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Power to Our Neighbourhoods: Towards Integrated Local Sustainable Energy Solutions Learning from Success

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Power to Our Neighbourhoods: Towards Integrated Local Sustainable Energy Solutions Learning from Success Power to our neighbourhoods: towards integrated local sustainable energy solutions Learning from success AreportbyCAGConsultantsforthe AshdenAwardsforSustainableEnergy June2010 Full Report About the Ashden Awards for Sustainable Energy The Ashden Awards for Sustainable Energy were founded in 2001 to reward and encourage the widespread use of local sustainable energy in the UK and the developing world in order to reduce carbon emissions and improve lives. UK Ashden Award winners, numbering more than 40, are delivering innovative local sustainable energy solutions through renewable energy, energy efficiency measures and behaviour change. They are drawn from sectors including small businesses, local authorities, charities and schools. The Ashden Awards, Allington House, 150 Victoria Street, London SW1E 5AE Tel: + 44 (0)20 7410 7055 [email protected] www.ashdenawards.org Registered Charity No 1104153 About CAG Consultants CAG Consultants is an employee-owned business providing support, policy advice and training in a wide range of inter-related fields which can broadly be categorised as: sustainable development and climate change; regeneration; and stakeholder and community involvement. Founded in 1983, we continue to deliver high quality, innovative and thoughtful work for our clients, who include government departments, local authorities, public agencies, the NHS and regeneration and community planning partnerships in both urban and rural areas. CAG Consultants, Gordon House, 6 Lissenden Gardens, London, NW5 1LX Tel: 020 7482 8882 [email protected] www.cagconsultants.co.uk About Houghton Research This report has been produced in association with Houghton Research. Trevor Houghton MSc is an independent consultant who has been working in the field of sustainable development for nearly 25 years with particular expertise in energy, climate change, planning and fuel poverty. Acknowledgements This research was conducted by CAG Consultants, working closely with The Ashden Awards for Sustainable Energy and members of the project‟s Advisory Group (see Annex A). We are grateful to all those that gave their time and expertise to take part in the research, including UK Ashden Award winners and other pioneering practitioners, nationally-renowned sustainable energy experts, and officials from Government and key public bodies. We are also very grateful to the Esmée Fairbairn Foundation for funding this work. This report can be downloaded at www.ashdenawards.org Power to our neighbourhoods: towards integrated local sustainable energy solutions. www.ashdenawards.org 2 Contents Executive Summary 4 1. Introduction 15 1.1 Background 15 1.2 Objectives 16 1.3 Approach 17 1.4 Structure of the report 18 2. The scale of the challenge in the UK 19 2.1 What is the challenge? 19 2.2 The policy landscape 24 2.3 The economic landscape 32 3. Learning from success: what has been achieved? 33 3.1 Local sustainable energy initiatives 33 3.2 Area-based energy efficiency approaches 38 3.3 Other approaches to delivering local sustainable energy 44 4 Building on success: what could be done? 50 4.1 What have we learned? 51 4.2 Existing approaches to delivering local sustainable energy 51 4.3 What could be done? 53 4.4 What might enhanced area-based approaches look like? 54 4.5 How can we enable success? 55 4.6 Empowering communities 60 5. Conclusions and recommendations 65 5.1 What are our conclusions? 65 5.2 How do we get there? 65 5.3 Considerations for the Ashden Awards 69 References 72 Annex A. Project Advisory Group 76 Annex B - Summary of practitioner workshops 77 Annex C. In-depth interviews 81 Power to our neighbourhoods: towards integrated local sustainable energy solutions. www.ashdenawards.org 3 Executive Summary Introduction Delivering local sustainable energy solutions1 at the neighbourhood level, through energy saving measures, small-scale renewable energy generation and collective behaviour change, is vital if the UK is to move towards a low carbon future. Drawing on best practice, this report demonstrates that area-based energy efficiency initiatives are a successful model for delivering emissions reductions at the neighbourhood scale. Furthermore, we believe that area-based approaches could be significantly enhanced if integrated with other successful approaches to delivering local sustainable energy. Empowering communities to take action, developing local energy supply and generation and building local supply chains are all invaluable. The report highlights the conditions that would enable this to happen and puts forward recommendations that will enable government to create a framework for a low carbon revolution in neighbourhoods across the UK. What makes this report different? The Ashden Awards wanted to know whether significantly more carbon savings could be achieved through pulling together local sustainable energy initiatives in an area to create synergies of skills, experience and enterprise, as well as economies of scale. This report provides an answer. It explores what could be achieved through better integration and coordination and makes recommendations for scaling-up and replicating successful approaches. Uniquely, our research draws on the experience of Ashden Award winners and other innovative practitioners in the field of local sustainable energy. Ashden Award winners have already demonstrated that local sustainable energy solutions - through technological solutions and through behaviour change - can play a significant role in the transition to a low carbon economy. It is from their success that we draw our findings. We have also worked closely with a Project Advisory Group - drawn from successful practitioners, key government stakeholders and local sustainable energy experts - to define 1 The Ashden Awards defines local sustainable energy as having three strands all delivered close to point of use: Energy saving programmes in homes and in public and private sector organisations. Examples include improved insulation or behavioural change, combined heat and power, and community heat networks. Renewable electricity. Examples include solar PV, mini-hydro, and wind turbines. Renewable heating and cooling. Examples include solar thermal, biomass boilers and ground source heat pumps. Power to our neighbourhoods: towards integrated local sustainable energy solutions. www.ashdenawards.org 4 and evolve the focus of the research. This has enabled the research to be responsive to those involved in delivering local sustainable energy solutions, while at the same time being informed by the ever-evolving policy context. And by working closely with government, we have been able to feed in the findings of the research as it emerged, to help inform policy as it has developed. What do we need to do? The UK is committed to reducing emissions by at least 80% below 1990 levels by 2050, and by at least 34% by 2020. We need to do this by providing clean energy from fossil-free energy sources and reducing demand, while at the same time helping enhance the „security‟ of energy supply. The new UK Government has pledged to become the „greenest government ever‟ and it now has a fantastic opportunity to expand support for energy efficiency and renewable energy. It also plans to create a „big society‟, through using the state to galvanise social action, empowering individuals and neighbourhoods. But it must do this within the context of reducing the structural deficit over the course of the next Parliament. Local sustainable energy solutions will play a crucial role in achieving this change. Their potential is huge. They can deliver significant physical and technological change. Insulation can deliver massive emissions reduction in the short term while small-scale renewable energy generation has considerable potential for emissions reductions in the residential sector - small scale wind turbines, solar PV, solar thermal water heating, biomass heating, ground source heat pumps, Combined Heat and Power and district heating schemes can all deliver. And local sustainable energy solutions are ideally placed to support behaviour change. Individuals can contribute to carbon emissions reduction through relatively minor behavioural changes. Ultimately at the neighbourhood level, local sustainable energy solutions can support a more fundamental move towards low carbon living through changes to collective behaviour, beliefs and value systems. The Big Green Challenge2 found that “community-based initiatives can initiate a process of culture change in the community which reinforces and sustains individual behaviour change”. What has been achieved? Area-based energy efficiency approaches Area-based energy efficiency approaches are an increasingly common and much- championed form of local sustainable energy initiative, sometimes referred to as „street-by- street‟ approaches. The UK Government, the Scottish Government, the Committee on Climate Change and the Energy Saving Trust (EST) have all shown support for this 2 The Big Green Challenge was a £1 million challenge prize run by NESTA designed to stimulate and support community-led responses to climate change. www.nesta.org.uk/areas_of_work/public_services_lab/environment/big_green_challenge Power to our neighbourhoods: towards integrated local sustainable energy solutions. www.ashdenawards.org 5 approach and as a result energy efficiency policies are increasingly favouring area-based approaches as a means of delivering greater emissions savings. The EST defines an area-based approach as one that “delivers
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